Cumberland Pharmaceuticals Reports 25% Revenue Growth For The Full Year 2017
NASHVILLE, Tenn., March 6, 2018 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company focused on hospital acute care, gastroenterology, and oncology supportive care today announced fourth quarter and full year 2017 financial results. Net Revenues for the year ended December 31, 2017 were $41.2 million, a 25% increase over the prior year period.
As of December 31, 2017, the Company had $93.2 million in total assets including $50.1 million in cash and investments. Total Liabilities were $29.3 million and Total Shareholder's Equity was $64.1 million. Cumberland also had fully reserved for $44.1 million in tax net operating loss carryforwards, resulting from the prior exercise of stock options.
- Launched Totect® in the U.S. with national distribution and promotion for the brand.
- Data from several favorable clinical trials published featuring Caldolor® and Vaprisol®.
- Initiated co-promotion support for Kristalose® significantly expanding physician coverage.
- Advanced patient enrollment in Phase II Boxaban®, Portaban® and Vasculan® clinical studies.
"These are exciting times at Cumberland as we progress on our key objectives," said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. "Our product portfolio has grown, our reach has substantially increased, and our pipeline now addresses several significant market opportunities. This diversified strategy has driven our double-digit top line growth over the past year. We enter 2018 with strong momentum and will work to continue our growth, improve our bottom line and progress our clinical programs."
Cumberland expanded its commercial product line in 2017 with the acquisition of exclusive U.S. rights to Totect® (dexrazoxane hydrochloride). Totect is an FDA-approved, hospital based oncology intervention drug, indicated to treat the toxic effects of anthracycline chemotherapy. Totect was launched during a national shortage of dexrazoxane, resulting in strong initial demand for the brand. To support oncology patients during the shortage, Cumberland provided emergency shipments of the product to cancer centers and children's hospitals across the country.
Caldolor and Vaprisol were the subject of favorable clinical publications in 2017. One study on Caldolor demonstrated its ability to significantly reduce fever in hospitalized children. Another study provided evidence that Caldolor can significantly improve post-operative pain control while also significantly reducing opioid use in patients undergoing surgery. Vaprisol was also highlighted in a publication as a well-tolerated solution for hyponatremia - a potentially serious condition that continues to be a leading type of electrolyte imbalance seen in hospitalized patients.
During 2017, Cumberland also entered into a co-promotion arrangement with Poly Pharmaceuticals, Inc. Poly is a privately held U.S. specialty pharmaceutical company that is introducing Kristalose to medical specialties Cumberland doesn't cover - bringing the brand's message to thousands of new medical professionals.
The Company's clinical pipeline programs continued to advance in 2017. Patient enrollment progressed in the Phase II Vasculan and Portaban studies, and Cumberland initiated a follow-on Boxaban study in allergy and asthma centers across the U.S after FDA clearance earlier in the year.
Net Revenue: For the three months ended December 31, 2017, net revenues were $11.6 million, up 28% from $9.1 million for the prior year period. Net revenue by product for the three months ended December 31, 2017, included $3.4 million for Kristalose®, $2.5 million for Ethyol®, $2.2 million for Acetadote®, including the Company's Authorized Generic, $1.4 million for Caldolor®, $1.1 million for Totect®, $0.6 million for Omeclamox®-Pak, and $0.2 million for Vaprisol®.
For the year ended December 31, 2017, net revenues were $41.2 million up 25% from $33.0 million for the year ended December 31, 2016.
Operating Expenses: Total operating expenses for the three months ended December 31, 2017 were $12.6 million, compared to $10.0 million during the prior year period. Total operating expenses for the year ended December 31, 2017 were $45.2 million, compared to $34.5 million for 2016. This change included increases in the royalties and cost of goods associated with the growth in sales.
Adjusted Earnings: Adjusted Earnings for the three months ended December 31, 2017 were $0.4 million, or $0.03 per share, compared to $(0.1) million, or $(0.01) per share in 2016. Adjusted Earnings for the full year ended December 31, 2017 were $0.1 million compared to $1.8 million, or $0.11 per share in 2016. This performance measure represents net income attributable to common shareholders with adjustments for the impact of income taxes, depreciation, amortization, share based compensation expenses, and non-recurring expenses. The definition and the reconciliation of Adjusted Earnings are provided in this release.
During the fourth quarter the Company recorded a non-cash expense of $372,500 for the contribution of Cumberland shares to its newly formed charitable foundation. That expense is in addition to the $4.2 million in non-cash expense resulting from an increase in the valuation allowance for the Company's deferred tax assets.
Balance Sheet: At December 31, 2017, Cumberland had $50.1 million in cash and marketable securities, with $45.4 million in cash and equivalents and $4.7 million in marketable securities. Total assets at December 31, 2017 were $93.2 million. Total Liabilities were $29.3 million, including $9.8 million outstanding on the Company's revolving line of credit, resulting in Total Shareholder's Equity of $64.1 million. Cumberland also had fully reserved for $44.1 million in tax net operating loss carryforwards, resulting from the prior exercise of stock options.
Conference Call and Webcast
A conference call and live Internet webcast will be held on Tuesday, March 6, 2018 at 4:30 p.m. Eastern Time to discuss the Company's fourth quarter and annual 2017 financial results. To participate in the call, please dial 877-303-1298 (for U.S. callers) or 253-237-1032 (for international callers). A rebroadcast of the teleconference will be available for one week and can be accessed by dialing 855-859-2056 (for U.S. callers) or 404-537-3406 (for international callers). The Conference ID for the rebroadcast is 2599485. The live webcast and rebroadcast can be accessed via Cumberland's website at http://investor.shareholder.com/cpix/events.cfm.